Annual Update of Circuit Breaker Tax Credit
Taxpayers age 65 or older who own or rent residential property located in Massachusetts are allowed a credit equal to the amount by which their real estate tax payments, or 25% of the rent constituting a real estate tax payment, exceeds 10% of the taxpayer’s total income, not to exceed $1,130. The amount of the credit is subject to limitations based on the taxpayer’s total income and the assessed value of the real estate, which for tax year 2019 must not exceed $808,000. For purposes of calculating the credit, total income and maximum credit thresholds are adjusted annually. For tax year 2019, an eligible taxpayer’s total income cannot exceed $60,000 in the case of a single filer who is not a head of household filer; $75,000 for a head of household filer; and $90,000 for joint filers. In order to qualify for the credit, a taxpayer must be age 65 or older and must occupy the property as his or her principal residence. See TIR 19-13.